If the Fed imposed a 100% reserve requirement, it would imply that
A) the Fed had no control over money supply
B) the Fed would no longer be able to conduct any open market operations
C) the money multiplier would be equal to one
D) the money multiplier would be equal to zero
E) banks would become completely obsolete
Correct Answer:
Verified
Q16: The stock of high-powered money is increased
Q17: Banks tend to hold some excess reserves
A)for
Q18: High-powered money
A)earns more interest than other forms
Q19: Assume many more stores agree to accept
Q20: An increase in the market interest rate
Q22: If the Fed decreases the reserve requirement,
A)market
Q23: The stock of high-powered money is reduced
Q24: If most economic disturbances are the result
Q25: The federal funds rate
A)is not affected by
Q26: Over which of the following does the
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